Alibaba earnings forecast slashed on weak consumer spending

[HONG KONG] Just as investors are watching whether a flurry of earnings reports due next month could revive Chinese technology shares, analysts slashed their forecasts on Alibaba Group Holding.

The company is expected to report on Nov 5, a week before China's busiest online shopping festival that's dubbed "Singles' Day".

Analysts have lowered their consensus 12-month earnings projection by nearly 5 per cent over the past 3 weeks to the lowest since July 2020, Bloomberg-compiled data show, amid weak momentum in domestic consumer spending.

Daiwa Capital Markets Hong Kong said the e-commerce firm was facing "one of the most challenging quarter", as it cut estimates recently.

Alibaba's Hong Kong-listed shares rebounded 24 per cent from a record low in the 4 sessions through Monday (Oct 11), but have since lost steam as concerns remain over China's technology regulations and slowing economic recovery.

The stock traded little changed as of 11.20am local time on Friday (Oct 15) as peers such as Tencent Holdings and JD.com gained at least 2.1 per cent each.

BLOOMBERG